Minh Phu issues 1 million ESOP shares

Minh Phu Seafood Corporation announced the issuance of more than 1 million ESOP shares to employees at a price of VND10,000, equal to 60% of the market price on the UPCoM floor.

According to a recent announcement, the Board of Directors of Minh Phu Seafood Corporation (stock code: MPC) said it is about to issue more than 1 million shares under the employee stock option program.

The issuance volume is equal to 0.26% of the total number of outstanding shares. The issuance price is 10,000 VND, equal to about 60% of the current trading price on the stock exchange (16,800 VND).

The capital raised from the issuance is expected to be more than VND 10.5 billion and will be used to increase charter capital, serve business needs and supplement the company's working capital.

The shares are expected to be issued in the third or fourth quarter of 2024, after the State Securities Commission receives full reporting documents. These shares are restricted from transfer within 5 years from the completion of the issuance.

The board of directors said the purpose of the issuance is to enhance the role, responsibility and rights of employees. In addition, it links the interests of employees with the interests of the company's shareholders, increasing motivation and productivity. The issuance also aims to attract talent and retain capable management personnel.

The allocation ratio for group 1 (including General Director, Deputy General Director, Director, Secretary of the Board of Directors and Assistant to the General Director) is 81.2% (equivalent to 853,000 shares). Of which, General Director Le Van Quang was purchased the most with a total of 187,200 shares (equivalent to 17.8%). After Mr. Quang, Ms. Chu Thi Binh, Chairwoman of the Board of Directors, was purchased with 141,200 shares (equivalent to 13.4%). The remaining 198,000 shares will be divided among 4 other groups.

On the stock exchange, MPC shares have fallen 11% from the highest price since the beginning of the year (VND18,900), down to VND16,800. The average matched volume in the last 10 sessions was over 86,300 shares. Market capitalization reached over VND6,718 billion.

Regarding business performance, in the first half of the year, Minh Phu recorded net revenue of more than VND6,488 billion, up 45% over the same period. Gross profit for the first half of the year reached VND639 billion, up 41% over the same period last year. Gross profit margin for the first half of the year reached 9.8%, an insignificant difference compared to the first 6 months of last year. The company reported pre-tax profit of VND65.8 billion and post-tax profit of VND45.7 billion after deducting expenses, while in the same period, it lost VND33.9 billion and VND88.1 billion, respectively.

At the 2024 General Meeting of Shareholders, Minh Phu set a target of 70,000 tons of production this year, bringing in VND18,568.7 billion in revenue. Pre-tax and after-tax profits were VND1,385.2 billion and VND1,265.7 billion, respectively. This is the third time in the past 5 years that the company has set a pre-tax profit target of over VND1,000 billion.

After half a year, Minh Phu has completed 34.9% of its revenue plan. However, the company has only completed 4.7% and 3.6% of its pre-tax and after-tax profit targets, respectively.

According to the Company's Board of Directors, the target of a profit of thousands of billions of VND in 2024 faces many challenges from economic fluctuations . Specifically, the Company recognizes that high inflation may continue to reduce demand for seafood consumption and increase prices of farming and processing materials. The Company chooses a strategy of product diversification, focusing on deep processing to create value-added products and maintain the quality of input materials to face this challenge.

The second issue mentioned by Minh Phu's management is the crisis in energy prices and transportation costs. Accordingly, the company said it will monitor the market and adjust its business plan flexibly, promoting expansion to Asian countries to reduce transportation costs and find niche markets as well as increase its ability to serve the domestic market. Specifically, the company said it will soon strongly exploit the domestic market again with the goal of increasing the total proportion of domestic revenue from the current 1% to 5-10%.

As of the end of the second quarter of 2024, Minh Phu's total assets reached VND11,198 billion, an increase of VND990 billion over the same period. The company has about VND5,697 billion in liabilities, most of which are short-term debts. According to the financial report, Minh Phu currently has equity of nearly VND5,502 billion. Undistributed profit after tax reached VND816 billion.

Source: https://baodautu.vn/minh-phu-phat-hanh-1-trieu-co-phieu-esop-d223602.html